Happy Workplace

China Airlines is dedicated to establishing a caring and protective enterprise. Through providing employees with total care and support, enhancing employees professional competence, enforcing mutual communication between CAL and employees, building a safe working environment, we provide employees with a happy workplace and an enjoyable lifestyle.

Employee Development

CAL emphasizes on the development of employees and ensures the training courses enhance their skills. CAL also improves the competencies of the Company's managers at various supervisory levels, and cultivate managerial capabilities and perspectives among personnel with potential for advancement.

Sound Training System and Framework

CAL has established a sound training system and framework to develop aviation professionals. We adopt diversified training methods, including on-site and online training courses, invest in training hardware and software. CAL values the functional development of employees and integrates fundamental aviation training with hands-on practice. In addition, CAL organizes business strategy and management related training for all managerial levels and employees with potential on a regular basis to improve their horizons and expertise.

Based on the demand of education and training, the Training Advisory Committee has been established to plan annual education and training activities for all employees. The primary strategic goal of CAL's training and development program is to enhance employees' job skills. Adopting the training framework of China Airlines Lecture Hall, CAL ensures that all employees are equipped with skills to perform their duties and job functions.

CAL as established Talent Development Committee, chaired by the President, with senior vice presidents serving as members. The Talent Development Committee is responsible for regularly reviewing and improving training for potential talents. Each department refers potential talents to the Talent Development Committee, which then determines their qualifications and development paths. During training, potential talents are provided with appropriate job rotations and management skill training, in order to build their management capacity and experience. For a long time, both at home and abroad, CAL has sought out and successfully trained many potential talents to serve as unit chiefs. CAL will continue to provide them with opportunities to develop their careers, in hopes of achieving corporate sustainability.

In 2020, CAL invested about TWD 158 million in employee training and development (the average amount is about TWD 14,000). The total number of training hours (including onsite and online courses) exceeded 350,000 (the average hours is about 34.5), and the completion rate of training reached 99.36%.


Employee Development Programs in 2020

Employee Development Program Business Benefits Quantitative Impact of Business Benefits Proportion of Employees Participation in the Program

Strengthen Passenger Transport Revenue Management Skills

Conduct a series of training on revenue management skills for passenger transport staff in line with the renewal of the revenue management system (Around TWD 945,000 in training investment)

  • Improve the professional skills and knowledge of passenger and cargo transport marketing personnel
  • Improve the accuracy of passenger transportation resources utilization to increase passenger transportation revenue
It is estimated that passenger revenues will increase by approximately 2% (Note) which is more than expected (Due to the impact of COVID-19, the effectiveness of the investment could not be revealed). Proportion to total employees: 1.0%

Add on Cargo Revenue Related Training

  • Strengthen cargo operation personnel's related cargo transport professional knowledge
  • Increase the number of flight crew members for cargo aircrafts (Around TWD 44.37 million in training investment)

Enhance cargo marketing effectiveness and fleet capacity to increase cargo aircraft revenue Cargo aircraft revenue for 2020 increased by TWD 26,793 million compared to 2019 Proportion to total employees: 1.2%

Note: "Source: History of revenue management from leg to O&D", Journal of Revenue and Pricing Management (2016) 15, 236-241.

Sound Internal Recruitment and Rotation System

CAL is committed to upholding the principle of assigning each staff member to a proper position. We offer regular job rotations and internal training courses to improve our employees’ job skills and overall productivity. Each department determines whether to rotate employees, based on their labor needs; in addition, we have established an internal recruitment system, so that employees can participate in the selection processes in accordance with their wishes and ambitions. This allows CAL to utilize its human resources in a flexible manner and ensures that employees are assigned to the most proper positions, resulting in a win-win situation for both parties.

Industry-Academia Collaboration

CAL has promoted its campus talent development program since 2013 by taking advantage of its abundant practical experience and sound aviation training facilities and courses. In response to the government's policy on industry-academia collaboration and talent development, CAL has cooperated with colleges and universities nationwide to offer internship programs that last for six months to one year in variety fields.

CAL also offers interns scholarships and allowances and arranges training courses for them. To start an internship, interns are required to pass the training courses first. In 2020, for the tenth consecutive year since 2011, CAL was awarded as a Top 20 Youngsters' Favorite Brand by Cheers magazine. Through industry-academia collaboration, CAL will continue to provide students with opportunities to gain aviation expertise and make their career plans, and thus help CAL recruit potential talents.

In 2020, a total of 110 students participated in the industry- academia collaboration programs and summer internship programs.

Industry-Academia Collaboration in 2020

Ground Service
(1-year term)
Dayeh University; Chung Yuan Christian University; China University of Science and Technology; Wenzao Ursuline University of Languages; Tainan University of Technology; Chang Jung Christian University; National Kaohsiung University of Science and Technology; National Taiwan Ocean University; National Yunlin University of Science and Technology; National Taipei University of Nursing and Health Science; Feng Chia University; Kainan University; I-Shou University; Vanung University; Overseas Chinese University; Shih Chien University (Kaohsiung Campus); Fu Jen Catholic University; Ming Chuan University; Takming University of Science and Technology; Hsing Wu University; Providence University; Lunghwa University of Science and Technology
Ground Service
(short-term)
Chung Yuan Christian University; Yuan Ze University; Soochow University; Kainan University; Vanung University; Shih Chien University; National Taipei University of Business; Fu Jen Catholic University
Cargo Transport
(6-month term)
Chang Jung Christian University; National Chung Hsing University; National Formosa University; National Kaohsiung University of Science and Technology; Feng Chia University
Kaohsiung Office
(6-month term)
Chung Yuan Christian University; Meiho University; National University of Kaohsiung; National Kaohsiung University of Science and Technology; National Yunlin University of Science and Technology; National Chi Nan University; Feng Chia University; I-Shou University; Shih Chien University (Kaohsiung Campus); Providence University
Education Technology and Visual Design
Fu Jen Catholic University; Tamkang University
Information Technology
Ming Chuan University; Hsing Wu University

2020 Ground Service Division Internship Training Course Completion Ceremony

2020 Ground Service Division Industry Student Training Course

Employee Rights

CAL attaches great importance to the opinions and well-being of our employees. In addition to regular reviews of employees’ salary and benefit and labor-management meetings, CAL has established a number of communication channels and activities to enhance cohesion. CAL also respects the independence of labor unions in accordance with the law and promotes positive communication with labor unions.

Salary and Benefits

CAL firmly believes that employees are the most valuable assets and that it is important to protect both employee benefits and shareholders' equity. For these reasons, CAL provides competitive salaries and benefits for all employees. The salary and benefit package of each employee will not differ according to gender, race, religion, political affiliation, or marital status. Whenever the minimum wage of a particular global location is raised, we promptly review our salary standards and make necessary adjustments in a timely manner. In 2020, CAL adjusted salaries by 1.67% on average. Employees who are required to work overtime due to the nature of their employment receive reasonable overtime pay, in accordance with regulations. No employee is forced to work against his or her will.

Male / Female Salary Ratio of CAL Group in 2020 (Female Salary is 1)

Company Base Salary Bonus
Business operations 1.30 1.25
Flight and cabin crews 2.04 3.36
Maintenance personnel 1.11 1.12
Others 1.21 1.20
Company Base Salary Bonus
Business operations 1.03 1.05
Flight and cabin crews 1.23 2.17
Maintenance personnel 1.03 1.52
Others 1.04 1.24
Company Base Salary Bonus
Business operations 1.39 2.42
Flight and cabin crews 3.24 2.80
Maintenance personnel 0.10 3.53
Others 1.36 2.07

Note 1: Female salary is 1 in this Salary Ratio Table.

Note 2: Flight and cabin crews include pilots and flight attendants, pilots were mostly male, while flight attendants were mostly female. Pilots' salaries are higher than flight attendants', resulting in a large difference in the male / female salary ratios; others include executives higher than the rank of vice president, auditors, accountants, information technology personnel, and other employees that are not within the aforesaid categories.

Note 3: Base salary: basic pay; bonus: pay outside base pay.

Note 4: The maintenance personnel of Tigerair Taiwan are all male.

Year-end Bonuses / Dividends

Retiree Portal (Retiree Association)

Employee Benefits

Annual Leave Scheme

Childcare

Group Health Insurance

Commuting

Concessional Flight Tickets

Employee Stock Ownership Trust

Resignation Program

Pension Scheme

CAL attaches great importance to the rights and interests of our employees. CAL reports the management of the pension reserve fund to the Labor Pension Reserve Supervisory Committee on a quarterly basis. Prior to the end of each year, CAL allocates the amount required for the following year based on actuarial calculations and relevant laws and regulations. In terms of allocation rates, the rate for the new labor retirement plan is 6%; the rate for the old labor retirement plan is 15%, which reaches the statutory upper limit, and this amounts have been fully allocated in accordance with Paragraph 2, Article 56 of the Labor Standards Act to ensure that employees receive the retirement benefits to which they are entitled.

Salary, Benefits and Pension Reserve Fund of CAL Group in 2020

Item 2018 2019 2020
Salary 16,580 15,998 13,659
Benefits 203 213 261
Pension reserve fund 6,184 6,347 6,241
Item 2018 2019 2020
Salary 780 864 850
Benefits 6.79 6.88 3.69
Pension reserve fund 384 352 390
Item 2018 2019 2020
Salary 724 870 720
Benefits 3.65 4.85 4.29
Pension reserve fund 1.90 2.53 1.54

Unit: TWD million

Note 1: Benefits offered by CAL / Mandarin Airlines included travel allowances, allowances for the elderly, scholarships, Labor Day gift money, spring parties, and anniversary expenses.

Note 2: Benefits offered by Tigerair Taiwan included travel subsidies, club allowances, birthday cash gifts, Mid-Autumn Festival and Dragon Boat Festival gift vouchers, spring parties, and family day activities

Employee Communication

Each and every employee matters to CAL. We maintain multiple channels of communication with our employees, such as regularly scheduled labor-management meetings, and strive to find solutions to problems. We have established an employee care mailbox, a sexual harassment mailbox with an associated grievance hotline, and also a "Speak Your Mind" employee communication mailbox. In addition, our Team+ internal company messaging software enables employees to express their opinions and make suggestions at any time. When facing significant operational changes that will affect employees, CAL gives notice in compliance with relevant labor regulations and promptly communicates with labor unions and employees. Information on material issues and employee rights is made available on CAL's website or e-mailed to all employees. When employees express concerns about certain internal regulations or practices, CAL seeks to clarify the issue and communicate with the employees more frequently.


Versatile Communication Channels


Quarterly Labor-management Meetings

Meetings are held on a regular basis, allowing CAL to communicate withCAEU representatives. Meetings between front-line divisions / departments and corresponding CAEU branches are held separately.

Supervisor Mailbox

CAL encourages employees to express opinions and give suggestions through the Level 1 supervisor mailbox.

"Speak Your Mind" Employee Portal

CAL encourages employees to express opinions and give suggestions through the "Speak Your Mind" Employee Portal on the Intranet.

Employee Care Mailbox

The Human Resources Division has set up an employee complaint email (wecare@china-airlines.com) to protect employees' rights and interests.

Team+

This internal company messaging system is offered to employees for free, to facilitate two-way communication and instant reporting to supervisors.

Labor Unions

CAL cooperates with different labor unions and remains committed to maintaining open communications in order to negotiate reasonable agreements. We show the same respect to all unions in accordance with law. After 2019, CAL did not have any major labor disputes or strikes in 2020, thanks to active communication with labor unions. In particular, the China Airlines Employees Union (CAEU), which has the highest participation rate of CAL employees, is a member of the Chinese Federation of Labor. There are six subordinate branches under CAEU, which are classified based on the location of members / business:

  • Branch 1 : Divisions in Head Office
  • Branch 2 : Flight Operations Division
  • Branch 3 : Cabin Crew Division and In-flight Supply Chain & Marketing Division
  • Branch 4 : Maintenance Division, Engineering Division, and Quality Assurance Division
  • Branch 5 : Taipei Branch, Ground Service Division, and Cargo Sales, Marketing & Service Division
  • Branch 6 : Kaohsiung Branch

There are six subordinate branches within the Mandarin Airlines Employees Union (MDAEU):

  • Branch 1 : Divisions in Taipei Head Office, Taichung Branch
  • Branch 2 : Flight Operations Division and Operation Control Center
  • Branch 3 : Inflight Services Department
  • Branch 4 : Customer Service Division (Taipei, Kinmen, and Taitung)
  • Branch 5 : Engineering & Maintenance Division
  • Branch 6 : Customer Service Division (Taichung, Magong, Hualien, and Kaohsiung)

All employees of CAL, with the exception of the top-level executives as stipulated in the union constitution, have joined the CAEU, which is the first of its kind in Taiwan's aviation industry, and is governed by a collective agreement signed by both parties in 2002. In January 2017, Mandarin Airlines entered into a collective bargaining agreement with the MDAEU. The CAL / Mandarin Airlines collective agreement pertains to union assistance; labor-management meetings and dispute resolution; employment and termination; working hours; leave and vacation; salary; allowances and bonuses; personnel transfers, rewards, and disciplinary actions; as well as benefits, training, and occupational safety and health clauses. The agreement is subject to renewal every three years in accordance with the law. CAL is now renewing the collective agreement with CAEU to maintain stable labor-management relations.

CAL / Mandarin Airlines cooperates and communicates with CAEU / MDAEU through various channels as a partner and based on mutual dependence, and the two parties have established various channels of communication over the years. All resolutions will be handled once they are reported. In addition, meeting minutes taken at labor-management meetings held at the Head Office are published and made available to all employees on CAL's website / Mandarin Airlines' website. CAL / Mandarin Airlines is dedicated to maintaining harmonious labor-management relations through open, efficient channels of communication. In 2020, due to the pandemic, CAL and the CAEU reached an agreement to hold two labor-management meetings in writing at the beginning of the year when the pandemic was at the most severe. A total of six meetings were held throughout the year to take into account both labor-management communication and joint pandemic prevention.

Union Participation Rate of CAL and Mandarin Airlines

Note 1: The number of CAL participants refers to the number of people being members of CAEU in the year (including employees in Taiwan); hourly-basis employees, interns, contracted employees, and executives higher than the rank of vice president are not included.

Note 2: The number of Mandarin Airlines participants refers to the number of people being members of MDAEU in the year (including employees in Taiwan below the rank of vice president (inclusive) and expatriate executives in Mainland China); hourly-basis employees and contracted employees are not included.

Note 3: Tigerair Taiwan does not have a labor union currently.

Note 4: The collective bargaining coverage rate of CAL / Mandarin Airlines is equal to the labor union participation rate.

Employee Engagement

CAL has established diversified and unobstructed communication channels to listen to employees' suggestions attentively in line with its belief that employees are the Company's most important asset. Through an employee satisfaction survey, CAL understood employees' opinions of and needs for the Company and each unit, which served as a reference for CAL to provide a stable work environment. This would further increase employees' work efficiency and create a virtuous circle-based excellent corporate culture. CAL conducted the employee satisfaction survey in 2019. The survey covered six major dimensions, including Organizational Health, Corporate Culture, Leadership, Job & Career, Working Environment, and Compensation and Benefits (effective response rate was 6.4, of which 6.5 for males and 6.2 for females, with no significant difference).

The employee satisfaction survey is conducted every two years in principle, and was originally intended to be conducted again in 2021, but was postponed to 2022 due to the pandemic. In 2020, CAL will continue to invest in a number of enhancements and improvements for its employees, as shown in the table below.

Relevant Improvements Corresponding Dimension
In order to increase the contact between cabin crew and the office during the pandemic, and to meet the needs of related message promotion, five microfilms were shot to optimize the message transmission and gain the attention of the crew.
  • Organizational Health
  • Corporate Culture
Strengthened message transmission (including strengthening the communication function of mobile devices) to let the team members know the Company better and to bridge the distance between the team members and the colleagues at the Company / office.
  • Organizational Health
  • Corporate Culture
  • Leadership
Organized four expert sharing sessions with 755 participants, to deepen the understanding of other units to facilitate future cooperation. More than 50 cross-disciplinary seminars were held separately by each unit according to their environment.
  • Organizational Health
  • Job & Career
  • Working Environment
The Flight Operations Division added two-way communication after the technical symposium, affair interchange meeting of chief pilots, and actively exchanged ideas and communicated with employees, as well as identified problems and assisted in solving the problems for them in the front line. Held once a month, the average number of participants is about 100.
  • Corporate Culture
  • Leadership
  • Working Environment
The Ground Services Division held more than 30 staff communication meetings to listen to the voices of the junior supervisors and staff members and to explain the Company's policies (including the impact of the pandemic on the Company's operation and the explanation of the shift reduction plan). The top-level supervisors and assistant supervisors gave lectures and answered colleagues' questions to achieve two-way communication and understanding.
  • Organizational Health
  • Corporate Culture
  • Leadership
  • Working Environment
The Company arranged for supervisors to go to the staff unit or the agent unit for training, so as to enrich the professional skills of the staff and cultivate talents for the management talents.
  • Organizational Health
  • Corporate Culture
  • Leadership
  • Job & Career

Healthy and Safe Workplace

CAL has established an Occupational Safety and Health Committee in accordance with law. The committee is tasked with the objective of preventing occupational hazards and protecting the safety and health of all employees by reviewing, coordinating, and making recommendations pertaining to safety and health related matters. The President acts as the chairperson. One deputy chairperson and one executive secretary are appointed. Members consist of Level 1 managers, occupational health and safety employees, engineers, and medical personnel from the designated divisions / departments as well as representatives appointed by labor unions. A meeting is held once every three months to review and analyze occupational incidents. All incidents are followed up and reported to the management so that related health management solutions can be subsequently developed. In 2020, a total of 12 safety and health proposals were reviewed and discussed, all of which have been closed. Meeting minutes were published on the EIP website; a total of 125 occupational safety reports were compiled, all 125 were improved and closed with an achievement rate of 100%.

Five Major Goals of CAL's Occupational Safety and Health



Proportion of Labor Representatives in Occupational Health and Safety Committee of CAL Group in 2020

Composition of Occupational Health and Safety Committee 2018 2019 2020
Proportion of Labor Representatives in Taipei Branch 36.36 36.36 36.36
Proportion of Labor Representatives in Taoyuan 38.46 38.53 37.73
Proportion of Labor Representatives in Kaohsiung Branch 37.50 37.50 37.50
Proportion of Labor Representatives in EMO 34.78 34.78 34.78
Composition of Occupational Health and Safety Committee 2018 2019 2020
Proportion of Labor Representatives 33.33 33.33 33.33
Composition of Occupational Health and Safety Committee 2018 2019 2020
Proportion of Labor Representatives 38.46 38.46 41.18

Note: Labor representative proportion = (Occupational Health and Safety Committee labor representatives / Occupational Health and Safety Committee total members) × 100%.

Dual International Certification of Occupational Health and Safety

To implement safety and health management more efficiently, systematically, and in accordance with both international trends and domestic and foreign standards, CAL has established an independent safety and health management system and enhanced risk controls in line with international standards. On April 20, 2019, CAL obtained ISO45001: 2018 and TOSHMS certifications for our safety and health management system, which adopts the PDCA model. Through the risk management mechanism, risk classification management is carried out according to each type of operation and job category into the following three categories:


Occupational Hazards Statistics of CAL Group in 2020
  The Number of Recordable Occupational Injuries Disabling Injury Frequency Rate Disabling Injury Severity Rate Incidents Resulting in Work-related Fatalities The Rate of Fatalities as a Result of Occupational Injury Occupational Disease Rate The Number of High-consequence Occupational Injuries The Rate of High-consequence Occupational Injuries Absence Rate The Total Working Hours
China Airlines Male 15 1.44 41 0 0.00 0.00 0 0.00 0.60% 10,392,676
Female 22 2.51 43 0 0.00 0.00 0 0.00 1.28% 8,763,652
Total 37 1.93 42 0 0.00 0.00 0 0.00 0.92% 19,158,240
Taoyuan 26 2.05 48 0 0.00 0.00 0 0.00 0.89% 12,633,062
Engineering & Maintenance Organization 6 1.28 37 0 0.00 0.00 0 0.00 2.14% 4,672,450
Taipei 1 1.32 7 0 0.00 0.00 0 0.00 2.14% 755,240
Taichung 0 0 0 0 0.00 0.00 0 0.00 0.13% -
Kaohsiung 4 3.65 13 0 0.00 0.00 0 0.00 1.37% 1,095,576
Mandarin Airlines Male 0 0 0 0 0.00 0.00 0 0.00 0.36% 824,104
Female 2 2.17 55 0 0.00 0.00 0 0.00 0.65% 920,032
Total 2 1.15 29 0 0.00 0.00 0 0.00 0.51% 1,744,136
Tigerair Taiwan Male 0 0 0 0 0.00 0.00 0 0.00 0.01% 650,000
Female 1 1.24 2 0 0.00 0.00 0 0.00 0.02% 806,000
Total 1 0.69 1 0 0.00 0.00 0 0.00 0.02% 1,456,000

Note 1: Disabling injury frequency rate(FR)= (Number of annual disabling injuries ÷ Annual working hours) × 1,000,000

Note 2: Disabling injury severity rate(SR)=(Absence days of annual disabling injuries ÷ Annual working hours) × 1,000,000

Note 3: Absence rate=(Absence days ÷ Annual working days) × 100%

Note 4: Mandarin Airlines/Tigerair Taiwan only have one business location in Taiwan.

Note 5: Disabling Injury Frequency Rate is equivalent to the definition of Recordable Occupational Injuries Rate in the GRI Standards.

Note 6: High-consequence Occupational Injuries: Occupational injuries that lead to fatalities or that are barely possible difficult to completely recover within six months. Rate of high-consequence occupational injuries (excluding fatalities)=[Number of high-consequence occupational injuries (excluding fatalities) / Number of hours worked] x 1,000,000

Note 7: The most common type of occupational injuries is falling.